The plant, to be developed on a 50:50 joint venture basis, will feature 2x800 MW units and will be a brownfield expansion of the existing Chandrapura Thermal Power Station, which currently runs at a capacity of 2x250 MW.

According to Coal India, the proposed ultra-supercritical units will operate at higher steam temperatures and pressures than conventional supercritical plants, enabling higher efficiency and reduced carbon emissions.

Coal for the plant will be sourced from nearby coalfields of CIL subsidiaries—Bharat Coking Coal Ltd and Central Coalfields Ltd, ensuring logistical ease and supply security.

The non-binding pact was signed in Kolkata on Monday in the presence of CIL Chairman P M Prasad and DVC Chairman S Suresh Kumar. It was inked by Debasish Nanda, Director (Business Development), CIL, and Swapnendu Kumar Panda, Member (Technical), DVC.

The agreement also includes provisions for collaborative development of future thermal and green energy projects, including projects with storage components, to meet the rising electricity demand in the DVC valley region.

The move is part of Coal India’s ongoing diversification beyond coal mining into power generation. The PSU currently accounts for over 80% of India’s coal output and is targeting 875 million tonnes of coal production and 900 million tonnes of offtake by FY2025-26.